Difference Between Strategic And Operational Management

When we talk about management, we often hear the term management, which is based on decision-making aimed at running a company well. In fact, management is a set of techniques for organizing the means working for a good administration of a legal or physical entity in order to guarantee its optimal performance. Two types of management exist strategic management and operational management. What are their differences? Read this article to discover them.

Strategic management


Strategic management consists of establishing a company’s significant objectives or an organization. In order to achieve these objectives, decisions and choices must be made that have a substantial impact in the long term to ensure and guarantee the performance and sustainability of the company.

Therefore, a few parameters must be taken into account to implement it. First, the analysis of the company’s environment while defining the factors allowing the success as well as the competitive advantages. Then, the knowledge of its internal resources and competencies.

By mastering these two elements, the general management determines the objectives and chooses the strategy to be applied in order to be able to analyze the expected results.

The tools of strategic management


In strategic management, the decisions taken often have considerable positive or negative impacts on the company’s future. These are irreversible decisions and choices, for example, a new establishment abroad, a new subsidiary, external growth, and many others.

However, in order to facilitate the implementation of the chosen parameters, strategic management must not be separated from operational management. Indeed, it may need to propose a collaboration with the entities and organizations concerned by the project.

Specialization in strategic management


Depending on the importance of the business, this management system can be broken down by function. First, there is the strategic management of human resources. Then, there is the strategic management of information systems and also the strategic management of management.

In each branch, managers choose strategies to steer the work in order to achieve the objectives. They also implement action plans, either through human or financial means, to pursue the results. To achieve this, managers must be vigilant and competent in making the right decisions and choices to suit the versatile environment of the company.

Therefore, they must be proactive and creative. In addition, to succeed in strategic management, it is crucial to possess several qualities and skills while mastering the world of one’s company, its strengths, weaknesses, and its external and internal environment.

Operational management

Operational management is based on the day-to-day management of the company. It focuses on the organization of the company’s daily activities and the setting of short-term objectives.

The actors of operational management


As a whole, it must lead to the company’s overall objective. The production, logistics, marketing, or human resources manager can handle this type of management. Indeed, each branch in the company can opt for operational management.

The principles of operational management

Operational management is implemented in accordance with strategic management. In order to achieve long-term objectives, short-term objectives must be established. Also, in the practice of this managerial system, we can identify the soft skills and the hard skills, which are essential to the implementation of action plans to achieve the objectives.

The articulation of operational management and strategic management


These two concepts are complementary if we want to ensure the company’s good health. If one, strategic management, is based on the company’s long-term and external vision, the other, operational management, is the basis for its implementation.

As with any relationship, be they professional or personal, communication is key. So, if you have any issues at work, then take it up with the higher up and try to communicate with them and try to see if you can resolve the problem together. Sound off in the comments section below and tell us what you want to read next.

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